-- Posted Friday, 7 January 2011 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Gains in the US dollar have resulted in commodities falling. However silver and copper are still over the mid December 2010 prices so the fall is not that much. The US dollar has gained on expectations that US December payrolls and its future outlook will be positive. Any bad news on US jobs prospects today can result in another round of weakness for the greenback. We need to be a bit careful on short US dollar trades today.
I am more concerned over rising food prices globally as well as in India. In India, winters are the time where prices of fruits and vegetables fall (particularly in North India). This time around prices have not at fallen. In fact the agriculture minister Mr. Sharad Pawar every now and then keeps on saying bullish comments over onion prices, milk prices etc. His comments suggest that he has a vested hand in manipulating food price in India. My view is that India has sufficient stocks of fruits, vegetables and other essential food stuff to keep prices in check. It is only hoarding and other forms of price manipulation that is driving prices higher. Milk prices have already risen over twenty five percent over the past two years in India. If food prices in India continue to rise at the current rate then growth will be derailed after 2015. India could have negative GDP growth after 2015 unless food price rise is checked. This is not just in India its all over the world.
TECHNICAL VIEW
COMEX COPPER MARCH
Bullish over $436 with $452 and $457 as price target
Bearish below $432 with $426 and $419 as price target
Neutral Zone between: $432-$436
$426.80 is the key support and there will be a technical breakdown below $426.80 all the way to $419 and $409. On the higher side a break of $438 will pave the way for $445 and $453.
MCX LEAD JANUARY
The key long term resistance is at Rs.123 and lead needs to trade over Rs.123 for three consecutive days to target Rs.135 and Rs.148. On lower side only a daily close below Rs.116 will result in a short term bearish phase to Rs.111 and Rs.107
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared By Chintan Karnani. Website www.insigniaconsultants.in
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-- Posted Friday, 7 January 2011 | Digg This Article | Source: GoldSeek.com
